Unions clash with Alexander over pension shake-up

Danny Alexander: Urged rank-and-file union members to help "shape" the current reforms

Unions bosses today vowed to press ahead with plans for a mass walk-out as they accused ministers of "deeply irresponsible" behaviour on public sector pensions reform.

Liberal Democrat Cabinet minister Danny Alexander told unions planning to bring Britain to a standstill they are making "a colossal mistake" and insisted the Government would not back down from shaking-up the gold-plated pensions.

Mark Serwotka, boss of the PCS union whose members are set to take part in a strike on June 30, said Mr Alexander's comments justified the walkout. "This proves we were right when earlier this week we described the talks with the Government as a farce," he said.

Kevin Courtney, deputy general secretary of the National Union of Teachers whose members will also strike on the same day, said it showed the Government "never had any intention of negotiating seriously".

He added: "The decision to dismantle public sector pensions has obviously been made."The row came after Mr Alexander, the Chief Secretary to the Treasury, unveiled detailed proposals which he said were "reasonable and balanced" and represented the best offer available for "years to come".

The reforms will see the public sector retirement age brought in line with the state pension, meaning most employees will have to work until 66, while contributions will rise by an average of 3.2 per cent with protection for the lowest paid workers.

A deal on the shake-up looks increasingly unlikely, with Britain already braced for a major strike on June 30 which will see a joint walkout by more than 600,000 teachers, civil servants and other public sector staff.

TUC general secretary Brendan Barber said Mr Alexander's intervention, ahead of a speech to the IPPR think-tank, had dealt a "serious blow" to union confidence in the talks.

"At such a critical time in complex negotiations this is a deeply inflammatory public intervention," he said.

He conceded that increased contributions would be "difficult" for some workers, but said staff earning less than £15,000 a year pro rata - roughly 750,000 people - will not have to pay more. Another 500,000 workers earning between £15,000 and £18,000 will see their contributions rise by no more than 1.5 per cent, while the measures will be phased in - a further overture to union members.

Tory MP Mark Field urged Mr Alexander to "stick to his guns" to stop the cost of pensions being passed on to future generations.